Elon Musk’s X Faces Advertiser Exodus Over Anti-Semitism

Elon Musk’s X Faces Advertiser Defections Amid Controversy Over Anti-Semitism

November 18, 2023

In an effort to address concerns about anti-Semitism, Elon Musk’s X is struggling to retain advertisers, leading to a growing exodus from the platform. Major advertisers such as IBM, Apple, and the European Commission have announced their departure from X, a social media platform that has been embroiled in controversies.

Advertiser defections have been triggered by the juxtaposition of Nazi content alongside company advertisements and reports of Elon Musk endorsing baseless anti-Semitic conspiracy theories. IBM confirmed that they are discontinuing advertising on X after discovering advertisements that endorsed Adolf Hitler and the Nazis alongside their own ads. The company stated that they uphold a principle of zero tolerance for hate speech and discrimination.

Similarly, the European Commission halted advertising on X and other social media platforms following the same report. The repercussions have extended to Hollywood studio Lionsgate Entertainment, which has also ceased all advertising on X. Additionally, Apple has discontinued all advertising on the platform.

A report by Media Matters, a progressive watchdog organization, revealed that major companies such as Apple, Amazon, Oracle, and NBCUniversal’s Bravo Network have had their advertisements featured alongside anti-Semitic content on X. The report emphasized the platform’s practice of paying certain creators to spread anti-Semitic posts.

Elon Musk’s statements in support of baseless anti-Semitic conspiracy theories have further ignited public anger. His post endorsing a claim that Jewish people harbor a “dialectical hatred” towards white people sparked significant backlash. This has heightened concerns about hate speech on X.

This situation arises during a financially challenging period for X, which heavily relies on advertising revenue. Musk publicly criticized advocacy organizations like the Anti-Defamation League for the 60% decline in advertising revenue in the United States. In an attempt to find alternative revenue sources, Musk has considered implementing fees for “verified” blue checkmarks on subscription services, but this strategy has not gained traction.

Linda Yaccarino, former Chief Advertising Officer at NBCUniversal and current CEO of X, has been working to mitigate the fallout and attract major advertisers back to the platform. However, the relaxation of content regulations by Musk has resulted in a surge of hate speech and conspiracy theories on X.

Notably, Jewish advocacy organizations have expressed concerns about the spread of anti-Semitism on X, particularly in the context of escalating conflicts in the Middle East. Jonathan Greenblatt, CEO of the Anti-Defamation League, posted on X, warning about the dangers of promoting and validating anti-Semitic theories during this time of heightened tensions.

During a public conversation with Benjamin Netanyahu, the Prime Minister of Israel, in September, Musk was urged to take a stand against anti-Semitism on his platform. While Musk stated his opposition to attacks on any group, he did not specifically promise to address anti-Semitism on X.

The advertiser defections have compounded X’s financial difficulties, creating a precarious situation for the platform. It remains to be seen how X will address concerns about anti-Semitism and regain the trust of major advertisers.